* SSEC +0.3 pct, CSI300 +0.2 pct, HSI +0.1 pct
* Inflows from China pension funds will top $1 bln - media
* COFCO-controlled companies advance on restructuring hopes
SHANGHAI, Feb 21 Shanghai stocks edged up on
Tuesday morning to an 11-week high, as risk appetites were
improved on hopes for big flows into stock markets from pension
funds plus news that some companies have scrapped new share
Hong Kong stocks inched higher, underpinned by resource
stocks as metals rallied in the mainland market.
The Shanghai Composite Index gained 0.3 percent to
3,248.40 points, its highest since Dec.2, and the CSI300 index
rose 0.2 percent to 3,480.14 points.
The tech-heavy start-up board outperformed, up
1.4 percent at midday.
Market sentiment was lifted by announcements from some
companies of scrapping or changing plans to issue new shares, in
response to China's securities regulator's move to restrict
"excessive" fundraising by listed companies.
Investors also found encouraging a Shanghai Securities News
report, citing unidentified sources, that around 10 billion yuan
($1.45 billion) of pension funds is expected to enter the market
by the end of this month.
Tian Weidong, analyst at Kaiyuan Securities in Xi'an, said
one part of the bullish sentiment fuelled by recent restrictions
on fundraising and expectation of pension fund investment was
offset by profit-taking.
"Investors lock in profit right after the index rose. Stocks
to maintain their strength were mostly related to the 'One
Belt, One Road' initiative," Tian said.
"Pension funds will be the biggest source of incremental
capital in the near future, and they would surely pick shares of
industry bellwethers and consequently boost the blue-chips," he
Companies controlled by Chinese food giant COFCO Corp rose
after the parent said it would partially privatise all 18
specialized units by 2018, as part of restructuring reforms.
COFCO Tunhe Sugar Co Ltd, COFCO Property Group
Co Ltd, Cofco Biochemical Anhui Co Ltd all advanced.
State media's report on a booming car-sharing industry in
China boosted optimism toward related stocks. Haima Automobile
Group Co Ltd and Lifan Industry Group Co Ltd
jumped 10 percent and 5.6 percent, respectively.
In Hong Kong, the Hang Seng index added 0.2 percent,
to 24,181.31 points, while the Hong Kong China Enterprises Index
gained 0.7 percent, to 10,513.98 points.
Most sectors advanced by the lunch break.
The index tracking resource stocks gained 1.3
percent, while futures prices of steel rebar were up 2
percent at midday after touching an all-time intraday high.
($1 = 6.8842 Chinese yuan)
(Reporting by Jackie Cai and John Ruwitch; Editing by Richard